x min read


Written by
Jarrod Wesson
Published on
January 3, 2018
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook

BLUE DIAMOND VENTU (OTCMKTS:BLDV) seems to be trying to make a turn around in the stock price once again. In our previous article, we noted that the company was in the right direction. As of today, we believe that we were not wrong in saying so. Logo from BLUE DIAMOND VENTU OTCMKTS:BLDVWhat did we say?We said that the company was not only showing a rock-solid balance sheet including $0.15 million in long-term investments, but it was also releasing significant agreements with third parties, like Quality Green Inc., for which the company was building a new state of the art cultivation facility in Canada. In addition, the expectations from the company were quite high. It was said that it expects to construct up to 12 Cannabis Cultivation facilities in the next two years.In our opinion, many on Wall Street seem to be noticing, right now, this level of business growth. Have a look at the following stock charts and note a large amount of trading volume: 1-month chart for BLDV 1-month chart for BLDVFor the starters, Blue Diamond Ventures is a holding company headquartered in Colorado. The opportunities that the company is finding in the medical cannabis markets are driving the share price right now. But, we cannot forget that it is also focused on providing services, such as sales and marketing, to the startup companies.Recent DevelopmentsThere are significant developments in the agreements and relationships with other companies in the sector. It seems to be one of the reasons behind sustaining the recent share price increase.First of all, BLDV noted a meeting with Quality Green team to further discuss the Site-B addition to its current Cannabis Cultivation License. It was said in November that operations in the new building would take place in January 2019, so that the company has the time to receive approvals from Health Canada. Additionally, it was released that in order to cope with the growing demand, the covered area of the building for Quality Green has been increased to 30,000 sq. ft. from 7,500 sq. ft. Please note that increases in capacity are always very well appreciated by the market.There is more from the meetings held at the MJ BizCon Convention in Las Vegas.Andrew Spasiw, CEO of Quality Green Inc., reported meetings with Cann10 Israel, in which it was discussed how Cann10 North America could help Quality Green in Canada. BLDV and Cann10 seem to be collaborating closely to enhance the business of this mutual client. We say this because of only a few weeks later, BLVD acquired in December a large stake in Cann10. We appreciate that companies are not competing, but helping each other. Many synergies will arise from this behavior.There is more.On December 4, 2017, the company released that it had been featured on the Uptick Network “Stock Day” Podcast. We believe that the most interesting was that BLDV was said to be the Most influential Cannabis Company. Additionally, the following comment of the CEO, Joshua Alper, was also remarkable:

“I think as we expand our presence in Canada, with clients like Quality Green Inc, and we double down on our success there, I think you will start to see the stock respond." Source

The new lighting systems in IsraelIn our opinion, the market is appreciating that BLDV is trying to expand its business in every segment of the marijuana market. We got this impression when the company released, in December, the acquisition of the North American rights to the Oricann® brand of Cannabis Grow Lights. This new lighting system, designed in Israel, is offering great innovations to cultivators. It combines low operating temperatures with energy savings and spectrum control that was said to be uniquely suited to the Cannabis Industry.We believe that BLDV was very sharp in contacting this new partner. The company receives commission on all sales in North America and will be responsible for appointing distributors in all areas in Canada. Be ready to assess the results of this new venture. It may affect the share price.Joint Venture with Cann10 North America Ltd.As mentioned, the company seemed to connect very well with the directors leading Cann10 North America Ltd. On December 21, 2017, it was released that BLDV is acquiring 25% of the shares in this newly formed venture. The market reacted very positively to the news because the new deal will bring a lot of accumulated expertise from Israel. In addition, the target does not seem small; the current valuation is $3 million.But, there is more.It was said that the new tax laws in the United States will favor the real-estate model designed by BLDV. We appreciate how the company has planned its business model and wonder if everybody is aware of this opportunity:

“We could get up to an additional 5% return for our investors on the projects that are already forecasted” said Jonathan Alper, Director in BLDV, Licensed Landscape Architect and the Master Planner.

ConclusionCurrently trading with a market cap of $8 million, BLDV is an exciting story among small caps. The balance sheet is another thing to like. With $18,078 in pure cash, $350,000 in prepaid expenses, $105,920 in equity investments and only $306,943 in total liabilities, the company's net asset per share is positive. This financial shape will give a lot of time to BLDV to keep the innovations going.To sum up, be sure to follow this name. We believe that it will surprise more in the near future.Be sure to check out our coverage on BLDV!We will be updating our subscribers as soon as we know more. For the latest updates on BLDV, sign up below!Disclosure: We have no position in BLDV and have not been compensated for this article.Image courtesy of Josh Turner via Flickr

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.